I'm not sure why so many people think a volatility cap is a good idea for any exchange. To a certain extent I guess I agree, but half of us only trade crypto because of the volatility.
Most of us coming from forex/stock markets and any trader with 'more than 3 neurons' (as the BFX devs put it) would immediately abandon BTC markets if a strict cap similar to other markets was every put in place.
Its really a risk/reward problem, even trading bitcoin comes with the inherent risk that your exchange will just run off with your money not to mention the sort of problems people have discussing here with 'halted' trading. In addition if you have an experience with forex/stock exchanges/brokers trading bitcoin is like stepping back into the dark ages. The fees are insane, there's no regulation, support for the trading platforms in pitiful by comparison, none of your funds are insured.
My forex account is not only insured for 2 million but I also earn interest just on the deposit (not for lending just for having money on the exchange). In addition most brokers offer ninjatrader, metatrader, or some other kind of support (the working version I might add), along with a number of other custom trading tools.
If the volatility is gone the traders will be too.
I also might add most of the markets mentioned as a precedent for such a policy have brokers that offer 300:1 leverage or more.
So something like 10% per hour would not be enough for you?
I can understand halting trades when the margin calls have caused a significant difference b/w stamp and BFX, but a flat '10% per hour to decline is too much' centralized all exchange halt like a few people here are suggesting sounds ridiculous.
What would you call such a system? 'FinCEN BTC, the first centralized authority in crypto!'
For a number of reasons the idea is nauseating.